EX-99.1 2 dex991.htm SLIDE SHOW Slide Show
Amedisys, Inc.
www.amedisys.com
NASDAQ: AMED
November 2007
Exhibit 99.1


1
Statements
contained
in
this
presentation
which
are
not
historical
facts
are
forward-looking
statements.
These
forward-looking
statements
and
all
other
statements
that
may
be
contained
in
this
presentation
that
are
not
historical
facts
are
subject
to
a
number
of
risks
and
uncertainties,
and
actual
results
may
differ
materially
from
those
forecasted.
Such
forward-looking
statements
are
estimates
reflecting
the
best
judgment
of
Amedisys,
Inc.
management
based
upon
currently
available
information.
Certain
factors
which
could
affect
the
accuracy
of
such
forward-looking
statements
are
identified
in
the
public
filings
made
by
Amedisys,
Inc.
with
the
Securities
and
Exchange
Commission,
and
forward-looking
statements
contained
herein,
or
other
public
statements
of
Amedisys,
Inc.
or
its
management
should
be
considered
in
light
of
those
factors.
Forward Looking Statements


2
Investment Highlights
Large, growing and fragmented industry
Focus on home nursing and related services to Medicare population
Strong internal growth and cash flow with low recurring cap ex
Proven operating model supported by sophisticated technology
system
Demonstrated ability to identify and integrate acquisitions
Substantial liquidity and balance sheet capacity to fund external
growth
Extensive delivery platform ideally positioned for Medicare care
management initiatives
Experienced management team


3
Management Team
William F. Borne -
Chairman and Chief Executive Officer
-
CEO since founding the Company in 1982
-
Registered nurse, extensive hospital administrative and clinical
experience
Larry R. Graham -
President and Chief Operating Officer
-
Joined
Amedisys
in
1996;
COO
since
1999;
President
since
2004
-
General Health Systems
-
Arthur Andersen
Dale E. Redman, CPA -
Chief Financial
Officer
-
Joined Amedisys in February 2007
-
CFO of United Companies
-
Ernst & Young


4
Corporate Overview
Leading provider of home nursing services
338
1
locations throughout the United States
Services include skilled nursing and therapy
Medicare and other episodic based revenue accounts for
approximately 94%
2
of net service revenue
Hospice
care
accounts
for
approximately
6%
2
of
net
service
revenue
1)
Both home health and hospice; as of September 30, 2007
2)
For the nine-month period ended September 30, 2007


5
Our Locations
1
1) As of
September 30, 2007
Largest home nursing provider in the Southern and
Southeastern United States
-
311 home nursing
locations
-
27 hospice locations


6
Our Strategy
Focus on Medicare-eligible patients
Develop and deploy specialized nursing programs
Expand care management capabilities
Prioritize internal growth
Select, acquire and integrate quality home care agencies
Leverage cost-efficient operating platform


7
Home health
care is a $62.8
billion
industry
Home nursing
is
the
largest
segment
in the
home health
industry
Medicare
spending for
home nursing
totaled $13.1
billion
in 2005
Home Health Care Spending
Home Health Industry Expenditures ($ billions)
Medicare
Home Nursing
$13.1
Home Nursing
(Commercial,
Medicaid &
Other)
$23.3
Home Nursing
$46.1
Infusion
Therapy
$5.5
Durable Medical
Equipment
$2.8
Respiratory
Therapy
$8.4
Hospice $9.7
Source:  Company Reports, CMS and CIBC World Markets Corp. estimates for 2005


8
Home Nursing Market
Industry is highly fragmented
8,500 Medicare-certified nursing agencies
Most are single-site, small local or regional providers:
-
Independently-owned agencies
-
Visiting nurse associations
-
Facility and hospital-based agencies
Publicly-owned providers account for less than 7% of the
home nursing market


9
Industry Growth Drivers
Trend from inpatient to home-based care:
-
Patient preference
-
Payor incentives
-
Technology advancements
Demographics –
aging population
Increased prevalence of chronic and co-morbid conditions


10
Internal Growth
-
Overall industry growth
-
Expanded and more effective sales force
-
Comprehensive range of clinical programs
-
Enhanced referral source education efforts
-
Increased focus on start-ups
Strong internal growth in episodic-based admissions
-
Approximately 11% for Q3 2007 and 13% year-to-date
Internal growth driven by:


11
Start-Up Strategy
Start-ups typically generate $1.5 -
$2.0 million in run-rate
revenue by the end of their second year of operations
~ 18 months to recoup the $250,000 -
$350,000 investment
28 home health start-ups completed through September  30,
2007
Yearly Start-Ups
40
25
13
8
36
0
10
20
30
40
2003
2004
2005
2006
2007
28
* Reported numbers are for home health start-ups
Completed
Projected


12
Acquisition Strategy
Disciplined approach
Acquisition criteria:
-
Defined pricing objectives
-
Targeted geographic profile
-
Compatible payor mix
-
Consistent clinical metrics
-
Expandable referral base
-
Opportunities for internal growth
Target hospital-based and multi-site agencies
Twelve acquisitions over the last twelve months ended 9/30/2007;
42
agencies representing approximately $100
million in revenues


13
Investments in Technology
Strategic advantages from technology
Standardized processes:
-
Automated review of assessment forms
-
Automatic scheduling
-
Web-based HR and payroll system
Centralized management of clinical oversight/utilization:
-
Real-time episode analysis
-
Daily/weekly review of quality indicators
-
Executive information system
Point of care roll-out nearing completion:
-
Rolled out 301 sites as of September 30, 2007; plan to be fully
deployed by year-end
-
Exceeding $1.5 million in quarterly savings
-
Initial cap ex investment of $9 -
$10 million


14
Comprehensive Compliance Program
Local Level
Clinical nurse review of
assessments
Standardized care plans
Physician
review/approval
Weekly case conferences
Monthly audits
End of episode case
review
Point-of-care system
enhances clinical
documentation accuracy
with real-time
assessment input
Regional Level
Corporate Level
Unannounced
compliance & billing
audits
Regional directors
monitor compliance
status and resolve
errors
Real-time monitoring
capability of local level
activity via point-of-
care system
Semi-annual
clinical/compliance
reviews
Compliance review of
metric variances
Compliance manager
site visits
Compliance training for
all employees
Compliance concerns
hotline
Annual Sarbanes-Oxley
audit


15
Medicare Reimbursement
Implemented in October 2000
-
Base payment for 60-day episode of care
-
Adjusted for patient acuity and market factors
CMS issued reimbursement changes on August 22, 2007
-
Expands HHRG from 80 to 153
-
Effective date of January 1, 2008
-
More integrated reimbursement for therapy
We preliminary
estimate that the reimbursement changes will affect our
revenue by an approximate -1% for 2008
-
Estimate assumes 3% market basket and no rural add-on
-
Our Point of Care system should be a competitive advantage with upcoming
reimbursement changes (reduces data fragmentation, improves
consistency, compliance control)


16
Financial Highlights
Increasing revenue
Cash flow/low cap ex requirements
Consistent EPS growth
Strong balance sheet to fund future growth
-
$250 million active shelf registration
-
$100 million unsecured credit revolver


17
EBITDA
is
defined
as
net
income
before
provision
for
income
taxes,
net
interest
expense,
and
depreciation
and
amortization.
EBITDA
should
not
be
considered
as
an
alternative
to,
or
more
meaningful
than,
income
before
income
taxes,
cash
flow
from
operating
activities,
or
other
traditional
indicators
of
operating
performance.
This
calculation
of
EBITDA
may
not
be
comparable
to
a
similarly
titled
measure
reported
by
other
companies,
since
not
all
companies
calculate
this
non-GAAP
measure
in
the
same
manner.
($ millions, except per share data)
Summary Financial Results
2005
2006
3Q06
Net revenue
$381.6
$541.1
$137.0
Period-over-period growth
68.0%
41.8%
22.1%
Gross margin
218.5
305.7
77.2
Margin
57.3%
56.5%
56.3%
Operating income
50.1
65.7
18.2
Margin
13.1%
12.1%
13.3%
EBITDA
57.2
75.7
20.4
Margin
15.0%
14.0%
14.9%
Fully-diluted EPS
$1.41
1
$1.75
2
$0.48
Period-over-period growth
23.7%
24.1%
33.3%
3Q07
$180.9
32.0%
101.6
56.2%
25.7
14.2%
16.3%
$0.61
3
27.1%
1)
Per share information for the year ended December 31, 2005 has been adjusted to reflect the four-for-three stock split effected in the
form of a 33 1/3% stock dividend for holders of record as of November 27, 2006.
2)
Adjusted to exclude $0.03 charge for write-off of deferred financing fees.
3)
Excludes the $4.2 million or $0.16  per diluted share Alliance gain
29.5
3
Net Income
38.3
30.1
10.6
16.0
3


18
Summary Performance Results
2005
2006
3Q06
Agencies
1
221
275
262
Period-over-period growth
24.4%
Medicare Completed Episodes
120,987
172,930
44,181
Period-over-period growth
42.9%
Episodic-Based Admissions
81,464
108,140
27,261
Period-over-period growth
32.7%
Revenue per Episode
$2,567
$2,634
$2,627
Period-over-period growth
2.6%
Total Visits
2,364,887
3,437,881
878,386
Period-over-period growth
45.4%
3Q07
338
29.0%
52,698
19.3%
32,672
19.8%
2.0%
1,102,913
25.6%
$2,679
DSO
58.4
49.3
62.3
52.9
1)
Inclusive of home health and hospice locations


19
Summary Balance Sheet
($ in millions)
Dec. 31, 2006
Sept. 30, 2007
Assets
Cash
(1)
Accounts Receivable, Net
Property, Plant and Equipment
Goodwill
Other
Total Assets
Liabilities and Stockholders’
Equity
Debt
All Other Liabilities
Stockholders’
Equity
Total
Liabilities
and
Stockholders’
Equity
$  72.5
86.6
66.7
307.4
31.5
$  564.7
$   89.0
74.9
53.0
213.0
33.9
$ 463.8
1)
Includes restricted cash of $4.8 million and $5.9 million as of December 31, 2006 and September 30, 2007, respectively.
$5.3 
94.5
364.0
$ 463.8
$23.7 
116.9
424.1
$  564.7


20
Guidance
Calendar Year 2007
1
Net revenue:
$675 -
$690 million
EPS
2
:
$2.25 -
$2.30
Diluted shares:
26.3 million
1)
Provided as of the date of our form 8-K filed with the Securities and Exchange Commission on October 30,
2007
2)
Excludes $0.16 per diluted share Alliance gain
Calendar Year 2008
1
Net revenue:
$800 -
$825 million
EPS:
$2.50 -
$2.60
Diluted shares:
26.7 million


21
Investment Highlights
Large, growing and fragmented industry
Focus on home nursing and related services to Medicare population
Strong internal growth and cash flow with low recurring cap ex
Proven operating model supported by sophisticated technology
system
Demonstrated ability to identify and integrate acquisitions
Substantial liquidity and balance sheet capacity to fund external
growth
Extensive delivery platform ideally positioned for Medicare disease
management initiatives and payor diversification
Experienced management team


22
Contact Information
Kevin B. LeBlanc
Director of Investor Relations
Amedisys, Inc.
5959 S. Sherwood Forest
Boulevard
Baton Rouge, LA 70816
Office –
225.292.2031
Fax –
225.295.9653
kleblanc@amedisys.com
Thomas J. Dolan
SVP of Finance
Amedisys, Inc.
5959 S. Sherwood Forest
Boulevard
Baton Rouge, LA 70816
Office –
225.292.2031
Fax –
225.295.9653
tdolan@amedisys.com


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